Correlation Between DLH Holdings and TriNet

Can any of the company-specific risk be diversified away by investing in both DLH Holdings and TriNet at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining DLH Holdings and TriNet into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DLH Holdings Corp and TriNet Group, you can compare the effects of market volatilities on DLH Holdings and TriNet and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in DLH Holdings with a short position of TriNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of DLH Holdings and TriNet.

Diversification Opportunities for DLH Holdings and TriNet

-0.47

Correlation Coefficient

DLH Holdings  TriNet

Very good diversification

The 3 months correlation between DLH and TriNet is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding DLH Holdings Corp and TriNet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriNet Group and DLH Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on DLH Holdings Corp are associated (or correlated) with TriNet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriNet Group has no effect on the direction of DLH Holdings i.e., DLH Holdings and TriNet go up and down completely randomly.

Pair Corralation between DLH Holdings and TriNet

Given the investment horizon of 90 days DLH Holdings Corp is expected to generate 1.46 times more return on investment than TriNet. However, DLH Holdings is 1.46 times more volatile than TriNet Group. It trades about 0.26 of its potential returns per unit of risk. TriNet Group is currently generating about -0.08 per unit of risk. If you would invest  394.00  in DLH Holdings Corp on April 30, 2025 and sell it today you would earn a total of  190.00  from holding DLH Holdings Corp or generate 48.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

DLH Holdings Corp  vs.  TriNet Group

DLH Holdings Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in DLH Holdings Corp are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical indicators, DLH Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

TriNet Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days TriNet Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with DLH Holdings and TriNet

The main advantage of trading using opposite DLH Holdings and TriNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DLH Holdings position performs unexpectedly, TriNet can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TriNet will offset losses from the drop in TriNet's long position.

The idea behind DLH Holdings Corp and TriNet Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.